Breaking the Prebish Singer Hypothesis using Panel Data Stationarity Tests

Rabah Arezki, Kaddour Hadri (), Eiji Kurozumi and Yao Rao ()

No 12-01, Economics Working Papers from Queen's Management School, Queen's University Belfast

Abstract: In this paper, we test the Prebish-Singer (PS) hypothesis which states that real commodity prices decline in the long run, using two recent powerful panel data stationarity tests accounting for cross sectional dependence and a structural break. We find that the hypothesis cannot be rejected for most commodities but oil.

Keywords: Panel data; Stationarity tests; Cross-sectional dependence; Terms of trade; Commodity prices; Prebish-Singer hypothesis; Structural break (search for similar items in EconPapers)
JEL-codes: C12 C33 N50 O13 Q32 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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